Singapore legislation
Section 40
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 40
Additional levies where PPF Life Fund or PPF General Fund insufficient to pay compensation
(1)
Where, in the opinion of the Authority, there are insufficient moneys in the PPF Life Fund or the PPF General Fund (as the case may be) to pay any compensation due to any covered party, to fund any transfer or run‑off of the insurance business of any failed PPF Scheme member, or to fund the termination of any insured policy issued by a failed PPF Scheme member under this Act, the Authority may, with the concurrence of the Agency, determine —
that PPF Scheme members are required to pay additional levies for any premium year or part thereof; and
the levy rate or rates for the purposes of computing the additional levies.
(2)
Where a determination is made under subsection (1) —
the Authority must, as soon as practicable —
publish a notice in the Gazette of the requirement to pay additional levies and the levy rate or rates for the purposes of computing the additional levies referred to in subsection (1); and
compute the additional levies payable by PPF Scheme members for that premium year or part thereof and notify the Agency accordingly; and
the Agency must, upon receipt of the notification referred to in paragraph (a)(ii), give written notice to every PPF Scheme member of the additional levy that that PPF Scheme member is required to pay for that premium year or part thereof and the date by which the additional levy must be paid.
(3)
Despite subsections (1) and (2), no PPF Scheme member may, without the prior approval of the Minister, be required to pay additional levy for any premium year exceeding such percentage of the protected liabilities or gross premium income (as the case may be) of the PPF Scheme member as the Minister may, by order in the Gazette, prescribe.
(4)
For the purposes of subsection (3), the insured policy base or gross premium income (as the case may be) of any PPF Scheme member must be determined on such date as the Authority may notify in the Gazette for computing the amounts of additional levies payable by PPF Scheme members.